Gold rose after hitting a two-week low, supported by lower U.S. Treasury yields as investors awaited U.S. President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskiy and European leaders to discuss a peace deal with Russia.
Spot gold was up 0.3% at $3,345.64 per ounce, as of 0156 GMT on Monday, after hitting its lowest level since August 1.
U.S. gold futures for December delivery rose 0.3% to $3,391.80.
“Gold was on the back foot to start the day, but … was able to reverse course with buyers stepping up to around the $3,330 level as a value play. U.S. treasury yields gave up some of Friday’s gains which also helped to make life easier for the gold price,” said Tim Waterer, chief market analyst at KCM Trade.
European leaders are set to join Zelenskiy for discussions with Trump.
Russia would relinquish tiny pockets of occupied Ukraine and Kyiv would cede swathes of its eastern land which Moscow has been unable to capture, under peace proposals discussed by Russia’s Vladimir Putin and Trump at their Alaska summit, sources briefed on Moscow’s thinking said.
“We are seeing limited moves in either direction ahead of what could be some lively meetings in the White House this week with Zelenskiy back in town,” Waterer said.
Meanwhile, benchmark 10-year U.S. Treasury yields eased from more than two-week high level.
Investors are also looking ahead to the Federal Reserve’s annual symposium in Jackson Hole, Wyoming.
Economists polled by Reuters largely expect the Fed to announce a rate cut in September, its first this year, with a possible second cut by the year-end amid mounting U.S. economy woes.
Non-yielding bullion, considered a safe-haven assets during periods of uncertainity, tends to perform well in low-interest-rate environment.
Elsewhere, spot silver rose 0.3% to $38.08 per ounce, platinum gained 0.8% to $1,346.61 and palladium was up 1.3% to $1,126.85.
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